ChainThink reports that, on July 1, industry sources indicated that Advanced Packaging by ASE has once again raised its prices by over 20%, covering advanced packaging technologies such as CoWoS and FoCoS, and involving major U.S. clients.
The price adjustment is driven by stronger demand for semiconductors fueled by AI applications, continued tight capacity in advanced packaging, and rising costs of raw materials and long-term investments. Currently, utilization rates at leading and mid-to-small-sized packaging and testing manufacturers are nearly at full capacity, and the market expects other packaging and testing firms to follow suit with price increases.
In a public statement, U. Tianyu, CEO of Advanced Semiconductor Engineering, previously said that the price increases primarily reflect rising raw material costs and higher investment expenses. The company’s capital expenditures have risen from approximately $2 billion annually in the past to $5.3 billion last year and $8.5 billion this year, with further increases still possible in the future.